scholarly journals Qowaidh Al-amr alaa saii’ nahii an diddhi dalam Bertransaksi dengan Bank Konvensional dan Efeknya terhadap Pertumbuhan Perbankan Syariah

2021 ◽  
Author(s):  
Fiskiatul Ula ◽  
Rachmad Risqy Kurniawan
Keyword(s):  
Islamic Banking ◽  
Islamic Banks ◽  
Legal Principles ◽  
Principles Of Justice ◽  
Conventional Banks

Abstract In this article, we will discuss the commands and prohibitions in transacting with conventional banks and their impact on the growth of Islamic banking. In the Qur'an, it has been explained that Muslims are prohibited from doing usury and it is God's rule to leave his servants in the transaction of usury and don't even approach him. Therefore, Islamic banks are banks that have securities that carry out business activities based on sharia principles, or Islamic legal principles regulated in the fatwa of the Indonesian ulema Council such as the principles of justice and balance, benefit, universalism, and do not contain gharar, maysir, usury, tyranny and unlawful object. While conventional banks are banks that carry out conventional business activities which in their activities provide services in payment traffic based on established procedures and provisions.Abstrak Dalam artikel ini akan membahas tentang perintah dan larangan dalam bertransaksi dengan bank konvensional dan dampaknya terhadap pertumbuhan perbankan syariah. Dalam Al-quran sudah dijelaskan bahwasanya umat muslim dilarang melakukan riba dan itu sudah peraturan Allah untuk meninggalkan hambanya dalam bertransaksi riba bahkan jangan sampai mendekatinya. Maka dari itulah Bank syariah merupakan bank yang memepunyai efek yang menjalankan kegiatan usaha berdasarkan prinsip syariah, atau prinsip hukum islam yang diatur dalam fatwa Majelis Ulama Indonesia seperti prinsip keadilan dan keseimbangan, kemaslahatan, universalisme, serta tidak mengandung gharar, maysir, riba, zalim dan obyek yang haram. Sedangkan bank konvensional yaitu bank yang melaksanakan kegiatan usaha secara konvensional yang mana dalam kegiatannya memberikan jasa dalam lalu lintas pembayaran berdasarkan prosedur dan ketentuan yang telah ditetapkan.

Is Islamic bank profitability driven by same forces as conventional banks?

2016 ◽  
Vol 9 (1) ◽  
pp. 46-66 ◽  
Author(s):  
Hajer Zarrouk ◽  
Khoutem Ben Jedidia ◽  
Mouna Moualhi
Keyword(s):  
Dynamic Panel Data ◽  
Islamic Banking ◽  
Subprime Crisis ◽  
Islamic Banks ◽  
Mena Region ◽  
Bank Profitability ◽  
Content Type ◽  
Large Sample ◽  
Islamic Bank ◽  
Conventional Banks

Purpose The purpose of this paper is to ascertain whether Islamic bank profitability is driven by same forces as those driving conventional banking in the Middle East and North Africa (MENA) region. Distinguished by its principles in conformity with sharia, Islamic banking is different from conventional banking, which is likely to affect profitability. Design/methodology/approach The paper builds on a dynamic panel data model to identify the banks’ specific determinants and the macroeconomic factors influencing the profitability of a large sample of 51 Islamic banks operating in the MENA region from 1994 to 2012. The system-generalized method of moment estimators are applied. Findings The findings reveal that profitability is positively affected by banks’ cost-effectiveness, asset quality and level of capitalization. The results also indicate that non-financing activities allow Islamic banks to earn higher profits. Islamic banks perform better in environments where the gross domestic product and investment are high. There is evidence of several elements of similarities between determinants of the profitability for Islamic and conventional banks. The inflation rate, however, is negatively associated with Islamic bank profitability. Practical Implications The authors conclude that profitability determinants did not differ significantly between Islamic and conventional banks. Many factors are deemed the same in explaining the profitability of conventional as well as Islamic banks. The findings reported in the current paper might be of interest for policy makers. It is recommended to better implement non-financing activities to improve Islamic bank profitability. Originality/value Unlike the previous empirical research, this empirical investigation assesses the issue whether Islamic banks profitability is influenced by same factors as conventional model. It enriches the literature in this regard by considering the specificities of Islamic banking to identify the determinants of profitability. Moreover, this study considers a large sample (51 Islamic banks) through a different selection of countries/banks than previous studies. In addition, the period of study considers the subprime crisis insofar it ranges from 1994 to 2012. Hence, this broader study allows the authors to draw more consistent conclusions.

scholarly journals Analysis of Indonesian Islamic and Conventional Banking Before and After 2008

2016 ◽  
Vol 8 (11) ◽  
pp. 193 ◽  
Author(s):  
Arfianti Novita Anwar
Keyword(s):  
Secondary Data ◽  
Rank Test ◽  
Islamic Banking ◽  
Positive Contribution ◽  
Islamic Banks ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
The Law ◽  
Conventional Banks

<p>This study aims to analyze the performance of Islamic banks and conventional banks before and after the implementation of Islamic Banking Act 2008. The performance will be measured using CAMEL ratio selected. This research is considered essential in examining the positive contribution of the application of the Act to improve the performance of Islamic banks in Indonesia. By using secondary data, this study compared the performance of Islamic banks with that conventional bank selected as samples during the study period. Data were analyzed using the Wilcoxon Signed Rank Test for inter-temporal and Mann-Whitney test for inter-bank. Inter-temporal Tests conducted on Islamic Banking showed that a significant difference was only seen in the NPF ratio of 2 years before and after implementation of Islamic Banking Act. As for conventional banks showed a more diverse ie for 1 year before and after the application of the Law on Islamic Banking there are significant differences for the ROA and ROE, two years before and after implementation of the Law Islamic banking there are significant differences for the CAR, ROA, ROE and NIM and for the overall test a significant difference to CAR, ROA, ROE, NIM and efficiency. Inter-bank testing showed that prior to the application of Islamic Banking Act there are significant differences between conventional banks and Islamic banks to CAR, ROA and efficiency. Furthermore, after the application of Islamic Banking Act there is a significant difference for the CAR and LDR / FDR.</p>

scholarly journals Customer Perception Regarding Car Loans in Islamic and Conventional Banking

2012 ◽  
Vol 2 (6) ◽  
pp. 174
Author(s):  
M. Taimoor Hassan ◽  
Mehtab Ahmed ◽  
Muhammad Imran ◽  
Azhar Naeem ◽  
Mudassir Waheed ◽  
...  
Keyword(s):  
Key Words ◽  
Statistical Technique ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Chi Square ◽  
Customer Perception ◽  
Conventional Banks ◽  
Corporate Customers

Purpose: To see the customer perception regarding car loans in Islamic and conventional banking. Methodologies: This study is based on primary data. These followed by only Bahawalpur corporate customers are taken as the sample research. Firstly the persons have been identified of the selected banks that are the financial affairs of those banks. When these people show their willingness then questionnaire has been filled by them and the required data has been collected. The statistical technique chi-square had been adapted for analysis the data. Findings: Total 120 questionnaires have been distributed among different banks and out of which 104 were get completed and returned. Peoples prefer conventional banks for car loans as compared to Islamic banks.   Key Words: Islamic Banking, Corporate Customer, Car Financing.

scholarly journals Pricing Linkage between Islamic Banking and Conventional Banking: The Case of Bangladesh

2016 ◽  
Vol 3 (4) ◽  
pp. 84
Author(s):  
Sarwar Uddin Ahmed ◽  
Ashikur Rahman ◽  
Samuel Parvez Ahmed ◽  
G M Wali Ullah
Keyword(s):  
Profit Sharing ◽  
Islamic Banking ◽  
Specific Rate ◽  
Islamic Banks ◽  
Loss Mechanism ◽  
Monthly Data ◽  
For Profit ◽  
Significant Difference ◽  
Conventional Banks ◽  
The Relationship

<p><em>Islamic banking is based on profit and loss mechanism where the use of interest is prohibited.  Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing.  However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits.  On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship was inconclusive, and requires further analysis.</em></p>

scholarly journals Pengaruh Religiositas terhadap Minat Mahasiswa Menabung di Bank Syariah

2021 ◽  
Vol 4 (1) ◽  
pp. 25-35
Author(s):  
Peni Darmisah ◽  
Saiin Saiin
Keyword(s):  
Data Analysis ◽  
Educational Background ◽  
Regression Method ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Remote Areas ◽  
Conventional Banks ◽  
Simple Regression

As students who have an educational background in Islamic Economics, each has a different perception of Islamic Banking. There are still students who compare Islamic banks and conventional banks, a doubt toward the operational saving system, financing or discounting, and the existence of conventional Banks being more affordable than Islamic banks in remote areas. This study aimed to examine the effect of religiosity on students' interest in saving in Islamic banks. This type of research was quantitative with data analysis using a simple regression method. The results showed that the t count was 14,832, and the t table was 1,975 < t count 14,832 with a significance of 0.000 under 0.05. Therefore, it concluded that religiosity significantly affects the saving interest of students at Islamic Banks.

scholarly journals ISLAMIC BANKING PERFORMANCE MEASUREMENT: A CONCEPTUAL REVIEW OF TWO DECADES

2021 ◽  
Vol 5 (1) ◽  
pp. 16-33
Author(s):  
Elyanti Rosmanidar ◽  
Abu Azam Al Hadi ◽  
Muhamad Ahsan
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Social Performance ◽  
Meta Analysis ◽  
Jel Classification ◽  
Research Trend ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Past ◽  
Conventional Banks

This article aims to provide an overview of the development of research on the measurement of Islamic banking performance over the past 20 years from 89 selected papers with Scopus-indexed journals ranked Q4 to Q1 or accredited with Sinta 2 to Sinta 1. This study used a qual-quantitative meta-analysis approach using the Mendeley citation application. The distribution of the topic and the depth of research in paper samples based on keywords in publications were analyzed using the VOSviewer application. The results of the analysis showed that the research trend of Islamic banking performance in reputable journals is increasing in recent years. Most of the studies performed in the last two decades have focused on the practice and corporate governance of Islamic banks and comparisons between Islamic and conventional banks based on financial performance ratios and aspect of maqasid al-Shariah; Only a few studies that discuss efficiency, social performance on Islamic banks, regulation, intellectual capital and stability of the financial performance of Islamic banks were found. The further discussion is an empirical exposure without theoretical exploration or analysis which is supposed to become the direction of banking research in the future.  JEL Classification Codes: G21, L25, P17, P47.

scholarly journals EVALUATION OF DUAL BANKING SYSTEM IN BANKING IN INDONESIA

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Amanatun Nisfah Nurun Nikmah ◽  
Tulus Suryanto ◽  
Surono Surono
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Common Goal ◽  
The Face ◽  
Capital Access ◽  
Conventional Banks ◽  
Banking Institution ◽  
Negative Factors

Evaluation of Dual Banking System in Indonesia. Dual Banking System is the application of two banking systems in one banking institution, namely conventional banking and Islamic banking. Indonesia can optimize the dual banking system through strength share and weakness cover, namely Islamic banks are generally superior in terms of a more stable system in the face of market changes but have deficiencies in infrastructure, whereas conventional banks have large market and capital access and more infrastructure complete, but very vulnerable to crises due to the negative factors of economic integration which are already very strong. The superiority of the dual banking system concept is seen in two separate systems that operationally do not affect each other, but have one common goal, namely financial stability that supports economic growth. So, to achieve this goal the two systems can work together in external factors such as access to capital, infrastructure, supervision or clearing systems that can help interbank liquidity.

Analisis Kepatuhan Syariah pada Bank Syariah: Studi Kasus Bank Pembiayaan Rakyat Syariah

2020 ◽  
Vol 4 (1) ◽  
pp. 27-35
Author(s):  
Aini Maslihatin ◽  
Riduwan Riduwan
Keyword(s):  
Descriptive Analysis ◽  
Supervisory Board ◽  
Fundamental Principle ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Quantitative Descriptive Analysis ◽  
Sample Distribution ◽  
Quantitative Descriptive ◽  
Conventional Banks ◽  
High Degree

Sharia compliance is the adherence of Islamic banks to Islamic rules or laws in muamalah and is one of the factors that differentiate it from conventional banks. Therefore sharia compliance is a fundamental principle in Islamic banking practices. Muamalah law, especially the economy, has a high degree of difference, so the sharia compliance standards in Indonesia refer to the Fatwa of the National Sharia Council-Indonesian Ulama Council (DSN-MUI). This study aims to analyze the practice of sharia compliance in Islamic Rural Banks (BPRS) in Indonesia. The data analyzed is the assessment of the Sharia Supervisory Board (DPS) on the practice of BPRS for five years. The sample distribution covers all regions of Indonesia with 24 units of analysi with 46 respondenss. The data analysis used quantitative descriptive analysis and compared it with the DSN-MUI fatwa. This study's results indicate that the level of compliance with Islamic rural banks in Indonesia is, on average, excellent. Other findings show that, when viewed from the contract's practice, financing with a musyarakah contract has the highest level of sharia compliance compared to separate agreements. Meanwhile, the lowest sharia compliance is in the murabahah contract. This condition is influenced because Islamic banks often use the murabahah bil wakalah contract. The weakness of this contract lies in the procurement of goods by customers, often not accompanied by proof of purchase.

scholarly journals A meta-crisis banking efficiency study in the MENA region

2020 ◽  
Vol 11 (9) ◽  
pp. 2087-2112
Author(s):  
Ioannis Anagnostopoulos ◽  
Emmanouil Noikokyris ◽  
George Giannopoulos
Keyword(s):  
Empirical Work ◽  
Efficiency Index ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Gulf Region ◽  
Bank Efficiency ◽  
Content Type ◽  
Conventional Banks ◽  
The Cost ◽  
Revenue Efficiency

Purpose The purpose of this paper is to comparatively examine the cost and the overlooked revenue efficiency of Islamic and commercial banks in the aftermath of the crisis, operating in nine MENA-based countries during the 2010-2017 financial period, where the established empirical work is relatively limited. The authors also update the research where they use recent data sets and they provide for a targeted, structured literature review pre- and post-crisis in the Gulf region. Design/methodology/approach The authors examine cost and revenue efficiency of 25 major Islamic banks (IBs) and 25 major conventional banks (CBs). They conduct tests on the determinants of such variables. In the first stage of the analysis, they measure efficiency by using the data envelopment analysis (DEA) technique. The analysis performs regressions where these also reveal that the bank efficiency index is influenced by various bank type-specific attributes. It also seems that tighter restrictions on bank activities are negatively associated with bank efficiency. Second stage analysis, which accounts for banking environment and bank-level characteristics, confirms these results. Findings Conventional banks are both more cost and revenue efficient than Islamic banks over the period under examination. The analysis also reveals that the bank efficiency index is influenced by bank-type attributes. Greater presence of fixed capital resources has positive effects on growth in both Islamic and conventional banking. The major constraints impeding Islamic banking growth include labour costs. The authors examine whether and how bank-type orientation affects the cost and revenue efficiency of conventional and Islamic banks. They find that post-crisis Islamic banks underperform their conventional counterparts on both accounts within a mixed banking system. Research limitations/implications This study did not include comparative data before the 2008 financial crisis. There is also a great deal of heterogeneity among Islamic banks in the samples that have been examined here and by other researchers and the constructed efficiency scores should be interpreted cautiously as divergent Islamic banks are pooled in the same samples. Practical implications This study identified factors that may help bank managers to improve their financial outlook by controlling revenue and cost efficiency profitability. These factors could as well help to understand how some indicators affect both cost and revenue efficiency, particularly in Islamic banking. It also seems that tighter restrictions on Islamic bank activities are negatively associated with bank efficiency. Islamic banks that directly compete with their conventional counterparts in the aftermath of the crisis are less efficient on both the cost and revenue frontiers. They are potentially hindered by the differential regulations of supervising authorities in dual banking systems. Social implications The authors provide recommendations regarding regulatory and other issues that are relevant to Islamic banking and further research is suggested. Findings are relevant to a variety of stakeholders (managers, policymakers and regulators). Islamic banking authorities could re-examine the benefits of partially moving to a more standardized/conventional system of banking by lifting some trading restrictions. In addition, developing and maintaining managerial skills is an indispensable instrument for the long-term endurance of any system. A related aspect is thus an effort to determine the holistic efficiency (including managerial) of Islamic banks as a guide for policymakers to improve managerial performance. Originality/value There is relatively limited empirical work that investigates the efficiency between Islamic and conventional banking in the aftermath of the crisis in the Gulf region despite the growing importance of this region on political and economic levels. The authors also examine the revenue efficiency measure often under-researched in the literature and particularly important for comparative studies. Overseas-owned banks have attained much higher infiltration levels in middle-eastern countries over the past decade. It has also been suggested that market penetration differences may also be related to bank efficiency concerns among countries and their financial systems as opposed to types of banks.

Islamic Banking in GCC

2020 ◽  
pp. 1-16
Author(s):  
Eda Orhun
Keyword(s):  
Financial Crisis ◽  
Literature Review ◽  
Performance Comparison ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Products ◽  
Gcc Countries ◽  
Before And After ◽  
Time Periods ◽  
Conventional Banks

This chapter offers a literature review discussing the origin, history, and the growth of Islamic Banking, especially in the GCC countries. It provides detailed information regarding how Islamic Banking evolved throughout the years and what are the current Islamic financial products. Another interesting topic covered in this literature review is the performance comparison of Islamic and conventional banks during different time periods. Accordingly, the chapter explores how the financial standing of Islamic banks altered in comparison to conventional banks before and after the financial crisis of 2008 by presenting earlier studies from various countries. It is concluded that some potential challenges and future opportunities of the Islamic Banking are yet to be explored.

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